Asian Stock Markets: Tesla and Netflix Slide, Yuan Range-Bound as Investors Anticipate Central Bank Meetings

Asian stock markets saw declines on Friday, with Tesla falling 10% and Netflix sliding 8.4%, disappointing investors. The market is eagerly waiting for the next week’s earnings reports. Meanwhile, the yuan remained range-bound after a strong official fixing. Jobless claims also fell unexpectedly, challenging the view that the Federal Reserve will be done with tightening. Investors are now looking ahead to next week’s meetings by the Fed, European Central Bank, and Bank of Japan to discuss policy and the rate outlook. In Asia, the MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.5%, and Japan’s Nikkei lost 0.6%. Technology stocks also dipped, with Taiwanese chipmaker TSMC seeing a 3.3% decline in its shares. Chinese blue chips were slightly down, while Hong Kong’s Hang Seng index gained 0.4%. Market concerns are growing over the health of Chinese property developers, particularly after rating agencies warned of potential defaults. The US stock market also experienced a setback, with the Nasdaq falling 2% due to disappointing earnings results from Tesla and Netflix. Furthermore, an unexpected decline in US weekly jobless claims fueled expectations for a strong payrolls report and higher interest rates. Ten-year Treasury yields were mostly flat in Asia, while the dollar index remained unchanged and the Australian dollar saw a decline. Oil prices, on the other hand, rose, with Brent crude futures up 0.8% and US West Texas Intermediate crude futures rising 0.8%. Gold prices remained flat. Overall, investors will be closely monitoring the upcoming meetings and policy decisions by central banks next week.